House Committee on Ways and Means Chairperson Miro Quimbo said that a total suspension of Value Added Tax (VAT) and excise tax on all fuel products could better address the threat of the ongoing crisis in the country.

Quimbo expressed that the supposed measure could provide direct and immediate relief to all sectors who are all reeling from the effects of the high cost of oil in the market.

Last Wednesday, 15 April, Department of Finance Undersecretary Karlo Adriano stated that the projected revenue loss of the government from a three-month cut of excise tax on diesel and gasoline was going to be around P38 to P39 billion during a joint committee hearing.

Provided with the information, the Marikina 2nd District Rep. rebutted, noting that previous data suggested that the government could afford such a suspension.

In addition, he expressed that the government could have already hit their projected targets for the year given the increase of fuel prices during the last 45 days of price volatility due to Middle Eastern conflict.

Quimbo acknowledged that the windfall from these developments were being used for cash relief distribution to affected sectors, however, he asserted that the implementation for the program was far from perfect.

“Ang ating programang ayuda, hindi pa siya ganun ka-efficient,” he explained during a press conference with reporters this Friday.

(Our relief program is not yet efficient)

“We have seen that we still need to fix our system of distribution because we are living witnesses in the last five days that it is not accurate, many individuals are not included,” he added.

The lawmaker reiterated that the suspension of VAT and excise tax for at least two months was going to be a more viable solution amid the current landscape of relief systems.

Quimbo stressed that the timeframe was going to allow the government to address issues regarding its subsidy distribution to better cater to a broader sector of individuals affected in the crisis.